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The increase in the number of fast-casual chains over the last few years has helped fuel competition for prime real estate spots.
 
According to data from market research firm NPD Group, the number of fast-casual units has increased from 18,176 units in the fall of 2014 to 19,043 locations in the fall of 2015. The growth is attributed to an increase in fast-casual menu concepts. Burgers, pizza, salads, and Greek and Mediterraneans fast-casual chains have gained popularity over the last few years.
 
Competition for real estate has intensified as many of these fast-casual concepts are looking for similar real estate spots: 2,000 square feet to 3,500 square feet locations in urban areas and suburban strip malls. Nation's Restaurant News reported that restaurant concepts that can fill bigger spaces are looking at these types of real estate locations as well, further intensifying the competition. Bucky Cook, CEO of Your Pie, said lease rates are also increasing, with the rates being highest in popular markets with growing populations.
 
"Some of it is very tight, and I'm seeing it become more expensive," Cook said. "Competition for spaces is more keen than it was four or five years ago."
 
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Nick Powills

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Nick Powills

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Nick Powills, CFE, founded No Limit Agency in 2008 and serves as Chief Brand Strategist for the Chicago-based firm. No Limit is a full-service communications agency that establishes and elevates brands by bridging Public Relations, Social Media, Marketing, Advertising, Digital, and a lot of creativity, to best strategize well-rounded and successful campaigns for 50+ global franchise brands. By presenting visionary ideas and building real relationships, No Limit is able to create effective media branding strategies to help companies grow. Nick currently leads a staff of writers, media strategists, designers, social media experts and digital producers in an office think-tank where brands are humanized for strong, compelling media stories. Prior to starting No Limit at the age of 27, Nick spent four years working at a franchise PR agency where he mastered the art of building rapport with media outlets and creating newsworthy pitches for earned media placements. He holds a Bachelor of Journalism from Drake University in Iowa.

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